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EXPLANATORY NOTES
260
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
The 2013 financial statements represent the separate
financial statements of the Parent Company Prysmian
S.p.A..
The present financial statements have been prepared on
a going concern basis, with the directors having assessed
that there are no financial, operating or other kind of
indicators that might provide evidence of the Company’s
inability to meet its obligations in the foreseeable future
and particularly in the next 12 months. Section C. Financial
risk management and Section C.1 Capital risk management
of these Explanatory Notes contain a description of how the
Company manages financial risks, including liquidity and
capital risks.
Under Legislative Decree 38 of 28 February 2005 “Exercise
of the options envisaged by art. 5 of European Regulation
1606/2002 on international accounting standards”, issuers
are required to prepare not only consolidated financial
statements but also separate financial statements for
the Parent Company in accordance with the International
Financial Reporting Standards (IFRS) issued by the
BASIS OF PREPARATION
International Accounting Standards Board (IASB) and
published in the Official Journal of the European Union.
The term IFRS refers to all the International Financial
Reporting Standards, all the International Accounting
Standards (IAS), and all the interpretations of the
International Financial Reporting Interpretations Committee
(IFRIC), previously known as the Standing Interpretations
Committee (SIC).
IFRS have been applied consistently to all the periods
presented in this document. The Company’s financial
statements have, therefore, been prepared in accordance
with IFRS and related best practice; any future guidance and
new interpretations will be reflected in subsequent years, in
the manner established from time to time by the relevant
accounting standards.
The financial statements have been prepared on the
historical cost basis, except for the valuation of certain
financial assets and liabilities, including derivatives, which
must be reported using the fair value method.
EIB Loan
On 18 December 2013, Prysmian S.p.A. entered into a loan
agreement with the European Investment Bank (EIB) for
Euro 100 million, to fund the Prysmian Group’s European
Research & Development (R&D) programmes over the period
2013-2016. The loan, known as the EIB Loan, represents
about 50% of the Group’s planned investment expenditure in
Europe during the period concerned.
The EIB Loan is particularly intended to support projects
developed in the Group’s R&D centres in six countries: France,
Great Britain, the Netherlands, Spain, Germany and Italy.
The EIB Loan was received on 5 February 2014; it will be
repaid in 12 equal half-yearly instalments starting on 5
August 2015 and ending on 5 February 2021.
Investments in subsidiaries
On 17 September 2013, the share capital of the subsidiary
Prysmian Treasury S.r.l. was increased by Euro 25,757
thousand.
On 27 September 2013, a capital contribution of Euro 40,000
thousand was paid to the subsidiary Fibre Ottiche Sud –
F.O.S. S.r.l..
Share capital
The share capital of Prysmian S.p.A. increased during 2013
after 82,929 options were exercised under the stock option
plan. After this exercise, the total number of shares at 31
December 2013 is 214,591,710 (including 3,028,500 treasury
shares).
The financial statements contained herein were approved by
the Board of Directors on 25 February 2014.
